Fintech startup Fly Now Pay Later has announced that it has raised £35m in Series A equity and debt funding, as investors look for disruptive solutions to the ailing travel industry.
The funding was led by Revenio Capital, with additional funding coming from Shawbrook Bank and BCI Finance.
Fly Now Pay Later enables travel customers to stagger the cost of their trips over up to 12 months, with funding offered at upwards of 0% APR. This is primarily offered through travel brands, including lastminute.com, although the startup has also launched a provider-agnostic app for consumers, which enables both individuals and businesses to fund trips with the service from any travel company.
The funding will also allow Fly Now Pay Later to expand its offering, which is currently available in the UK, into mainland Europe, starting in Germany in the next few months and France towards the end of the year.
Fly Now Pay Later takes on coronavirus-hit tourism industry
The funding comes as the tourism industry is taking a severe battering over the coronavirus pandemic, with Fly Now Pay Later hoping to help travel companies attract customers at a time when booking trips is intensely uncertain.
“Few industries have been affected as significantly as tourism in the wake of Covid-19. Many companies have been affected and we are not different,” said Jasper Dykes, CEO of Fly Now Pay Later.
“This investment is a welcome boost to the sector, and provides us with adequate cash flow to help steer us through these challenging times.”
The company also expects its service to help those needing to fly when prices rise after the lockdowns.
“It’s predicted that once lockdown restrictions begin to ease, airlines will need to recoup costs – leading to unavoidable price rises in the future,” said Dykes.
“There are tens of thousands of people who have families around the world who need a frictionless way to finance their flights. Likewise, for many businesses to operate internationally, flying is an essential requirement for employees.
“Fly Now Pay Later offers travellers a flexible and affordable way to pay for travel. By removing financial boundaries, we hope to open the post-Covid-19 world for travellers and reconnect people with their friends and families around the globe.”